KKR and Mirastar, KKR Real Estate's industrial and logistics platform in Europe, have acquired a 2.7 million square foot portfolio of eight UK logistics assets from Ares Real Estate funds. The portfolio is valued at approximately £400 million ($529 million).

KKR is a US alternative asset manager listed on the New York Stock Exchange under the ticker KKR, reporting assets under management of $638 billion at the end of 2024. Ares Management, the seller's parent, is a US alternative investment manager listed on the New York Stock Exchange under the ticker ARES, reporting revenue of $3.885 billion and assets under management of $484.4 billion for 2024.

The fully occupied portfolio comprises modern, high-quality assets across established distribution markets in the Midlands, South East and North of England, including Corby, Doncaster, Stoke-on-Trent and Milton Keynes, benefiting from strong connectivity to key population centres and transportation infrastructure.

The structural driver is constrained supply of high-quality, fully let logistics stock in established UK distribution corridors, drawing institutional capital toward income-generating portfolios rather than speculative development.

Mai-Lan de Marcilly, co-head of European real estate equity at KKR, said, "We continue to see strong fundamentals in UK logistics, underpinned by resilient occupier demand and constrained supply in key markets. With its combination of durable income and meaningful growth potential, this portfolio represents the type of opportunity KKR's diversified pools of capital are well positioned to pursue."

KKR and Mirastar were advised by DTRE and DLA Piper. In late July, KKR and Mirastar announced the acquisition of a portfolio of four prime UK logistics assets from PLP for approximately £170 million, totalling 1.25 million square feet.

Mirastar operates as KKR's dedicated industrial and logistics platform across Europe, focused on acquiring and managing modern warehouse and distribution assets on behalf of KKR's real estate funds.

For the sector, the acquisition underscores continued institutional capital flows into UK logistics real estate despite broader softness in commercial property transaction volumes, with major asset managers continuing to compete for scarce, fully let portfolios.

Source: Connect CRE